11/13/15 was down -0.77 to 56.69. The ZZZs have now been beat down until they are discounted by -4.09 to the component.

The 6-day moving average carcass weight continue to move higher. This morning it moved up to 214.55#. This suggests to me, when coupled with the high kill rate last week, that producers are falling behind in their shipments and sets that stage larger kills going forward which has a good chance of putting more downward pressure on hog prices.

I got short a couple of ZZZs this morning and have scaled in an out quite a few times but am clinging to one of the short ZZZs. I will play the cat-and-mouse game with the bulls and try to stay short until I see some signs that this powerful down-trend is slowing or coming to an end.

I am able to get a little spread action that may help my margin a little today.

Best wishes,

dhm